The U.S. economy is "on a slippery slope organically without the ongoing benefits, if you want to call it that, of government intervention and expansion of the Federal Reserve balance sheet," economist David Rosenberg told CNBC Tuesday.
"We have to be honest with ourselves, this has been an absolutely horrible recovery," he said. "It’s just so evident to me two years into this expansion that whenever the fiscal and monetary spigots are turned off we go into a soft patch. This happened last year. I feel like Bill Murray in 'Groundhog Day.'"
Rosenberg, of Gluskin Sheff + Associates, expects the Federal Reserve to "stick to script" and repeat what Chairman Ben Bernanke said at a June 7 speech in Atlanta—the economy has hit a "soft patch" but there will be a second-half pickup.
However, Rosenberg, who predicts a 99 percent chance of recession next year, said things are worse than the Fed acknowledges. He says when the recession comes and is priced into the market there will be a correction of 20 percent.